For those falling in the higher salary bracket, the provident fund body EPFO is mulling over a proposal to raise the investment limit in equity to 25% against the current 15%. Of the total contribution in PF, 15% is diverted towards equity and the rest in debt given the current outperformance of the equity markets and hence to lap up higher gains.
Nonetheless, for those earning low income, the earlier provision for equity investment shall continue to be followed.
Time and again the investment portfolio of the EPF portfolio is being re-jigged as investors seek better returns than debt instruments which offer lower returns.
It shall also be a move to make the returns at par with the NPS which allows investment of a maximum of 50% into equities.
The equity kitty of EPF began with investment into ETFs which at first attracted only 5% of the subscriber's contribution to EPF which now has been moved higher to 15%.